What's new in shadowprice.com version 3.5.

shadowprice.com

a customer retention science tool.

Get to know shadowprice.com version 3.5.

What’s new about 3.5?

Autopilot looks at two base load power cost regimes.
The low cost regime assumes primary reliance on coal and nuclear benefiting from embedded cost recovery and rating upgrades.
The high cost regime assumes primary reliance on natural gas fired combined cycle gas turbines and nuclear benefiting from embedded cost recovery and rating upgrades.
Autopilot series can use the same game assignment seeds to play 90 games with the low base load power cost regime, then 90 games with the high base load power cost regime.
Autopilot series can use the same game assignment seeds to additionally vary the player’s rationale for price following and merger decisions – resulting in 360 games played with the first 90 game assignment seeds.

From previous upgrades, Autopilot can use the first 90 game assignment seeds to additionally assess changes in the player’s portfolio and the impact of a market rule forbidding the incumbent to price below its wholesale cost of power.

We put together a battle plan loaded with good intentions for a 3.5 beta-test shakedown.

You can purchase Autopilot 3.5 on a 4 gigabyte memory stick and test your own favorite portfolio design and most likely market power manifestations where you reside.

Why shadowprice.com?

According to the late Nobel Laureate John R. Hicks in Value and Capital, shadow prices are determined by equilibrium conditions. Robert Dorfman, and Nobel Laureates Paul A. Samuelson and Robert M. Solow in Linear Programming and Economic Analysis define shadow prices as the economic rent owed to productive factors, derived as the dual solution to a linear programming problem. Michael D. Intriligator in Mathematical Optimization and Economic Theory defines shadow price as a Lagrange multiplier measuring the sensitivity of a value to changes in a quantity.

shadowprice.com looks at shadow prices in two ways related to market power and imperfect information. In terms of (one particular manifestation of) market power, Monte Carlo solution shadow prices measure the sensitivity of an efficient or nearly efficient competitive market to power vested in the intransigence of an incumbent and its customers, and to power vested in service providers to reduce competition through merger anticipating behaviors. In terms of imperfect information, shadowprice.com measures losses and gains in household consumer and service provider producer surplus, in price peace and price wars, owing to service providers acting on the basis of the assumed behaviors of other service providers. In other words that capture both concepts, shadowprice.com takes a modern view of shadow price that distinguishes between a market that optimizes (or nearly optimizes) benefit to households and service providers, and the imperfectly informed market that actually exists.

shadowprice.com is not a dotcom in the E-Commerce sense often associated with the Internet bubble. Dan Hamblin named the URL shadowprice.com to market his simulation tool and game, because shadow prices and what they represent have played a significant role in his answers to technology and policy questions during his professional career.